Despite being the backbone of theAlbanian economy, micro, small and medium sizedenterprises(MSMEs) face difficulties in accessing financewhich impedes their growth. MSMEs in Albania aresignificantcontributors to the economy. In 2016, MSMEs comprised 99.9percent of active enterprises and 81 percent of the totalnumber of employed people. According to the World EconomicForum Global Competitiveness Report access to finance is thethird biggest constraint in Albania for enterprisedevelopment and competitiveness after tax rates andcorruption. This is in line with a recent EC survey whichfound that only 17 percent of MSMEs believe that there areno obstacles to obtaining finance, a number significantlylower than in other comparableeconomies. The number of MSMEshaving used bank financing is low compared to theEuropeanUnion (EU) average at 29 percent foroverdraft/revolving facilities and 14 percent for otherbankloans respectively. At the same time, the number ofAlbanian MSMEs which financed their operationsfrom retainedearnings stands at 24 percent, while 15 percent stated usinginformal third-party finance (family, friends, etc). TheMSME sector is generally characterized by high informality(especially in agriculture), limited availability ofcollateral, low levels of financial capability, and limiteduptake of digital transactions.
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